CORRECT:MARKET TALK:HSI +0.2% Midday;21,000 Key Cap-Strategist

26th Jul 2010 07:29

0629 GMT [Dow Jones] (An item at 0442 GMT mischaracterized the HSI's early high. The correct version follows:) HSI +0.2% at 20,860.01 midday, adding to 3.6% rise over past 4 sessions supported by Wall Street gains, but further upside likely capped after recent strength, says Linus Yip, strategist at First Shanghai. Index off early high of 20,963.08, tad below psychologically key 21,000, or 250-day moving average (20,975), which likely taken as immediate cap, he adds. "Investors seem to remain cautious after Hong Kong shares' recent gains, with trading volume staying modest (HK$31.93 billion), while upcoming release of interim results from blue chips are taken as near-term focus." HSBC (0005.HK) +0.7% at HK$77.45 after it passed Europe-wide bank stress test, while HK property stocks higher ahead of government's land auction Wednesday, with New World Development (0017.HK) +2.0% at HK$14.44, Hang Lung Properties (0101.HK) +1.7% at HK$33.60. ([email protected]) Contact us in Singapore. 65 64154 140; [email protected] (END) Dow Jones Newswires July 26, 2010 02:29 ET (06:29 GMT)